20X2 Journal entries:

1)January 1: The company issues 30,000 shares of common stock (no par value) for a total $180,000 amount.

2)January 1: The company sells their only truck for $41,200. Hint: The prior post-closing trial balance shows the company's updated balance for its only truck.

3)January 13: The company writes off $3,700 for one of their customer's accounts.

4)February 1: The company purchases land and a building to be used in operations for a lump-sum of $410,000. Assume that the land has a fair value of $180,000, while the building has a fair value of $320,000.

5)February 8: The company sells 85 units of inventory on account for $1,050 each.

6)February 12: The company purchases 10 units of inventory on account for $420 each under terms 5/10, N/30. Assume that the company uses a gross method for cash discounts.

7)February 15: The company purchases a supplier's company for $89,000. The supplier had the following accounts (at fair value): $26,000 of accounts payable; $34,000 of accounts receivable; and $58,000 of trademarks.

8)February 20: The company pays for the full balance owed from the February 12 purchase.

9)March 6: The company is paid "in advance" for 20 units of inventory to be delivered in the future for $1,075 each. No cost of goods sold is recorded until the products are delivered.

10)March 11: The company is checking for impairment on its "renewable-life" trademarks account acquired on February 15 assuming that the book value remains $58,000. The company finds that the trademarks' expected future cash flows are $51,000, while the fair value is now $62,000.

11)March 17: The company declares a $0.30 per share cash dividends for all outstanding shares of common stock.

12)March 21: The company delivers the 20 units of inventory purchased on March 6. Hint: Recall that the company uses LIFO, and note that any inventory purchases and payments during the period may affect your cost of goods sold.

13)March 30: The company pays $26,000 to internally develop a patent. The patent costs consist of $5,000 for prototype development, $3,000 for testing, $7,000 for filing fees, and $11,000 for personnel.

14)March 31: The company uses up $1,600 of prepaid insurance each month.

15)March 31: The company conducts a physical count of inventory and finds that the inventory is 2 units short of the number of units found on the books. Since the company follows LIFO, the 2 most recent units are removed in the adjusting entry.

16)March 31: The company estimates that 10% of outstanding accounts receivable by March 31 will be uncollectible. Hint: Be careful with balances.

17)March 31: The company counts that $4,500 of supplies (used in effort for sales) remain on hand.

18)March 31: The company records depreciation (using a double-declining-balance method) on the building purchased on February 1. Assume that the building has a salvage value of $45,000 and a 25-year useful life left.

19)March 31: The company records the first interest accrual entry on their $50,000, 3-year, zero-interest-bearing notes receivable that was issued on December 31, 20X1, with interest due at the end of each year. The note's carrying value at December 31, 20X1, is $35,069 assuming a 12% annual market rate. Hint: Use a quarterly adjustment to the market rate to get the adjustment entry amount.

20)March 31 (do only after the income statement is completed): The company records the income tax expense for the quarter. Hint: this number can be found in the income statement. Assume that the income tax will not be paid for another month. It is recommended to enter amounts manually into this entry to avoid a "circular reference error."

21)March 31 (do only after the income statement and retained earnings statement are completed): The company records the quarter's closing entries (all 4 steps). It is recommended to enter amounts manually into the closing entry to avoid a "circular reference error." You may get a very slight rounding error compared between the closing entries and the income statement or retained earnings statement. Hint #1: The "income summary" account is not used in any of the statements or ledgers; it is only a temporary account used during closing. Hint #2: Gains and adjunct-revenue accounts should be closed when revenues are, while losses and contra-revenue accounts should be closed when expenses are.